Looks like the ghost of Bethune is haunting Willis tower.;

http://finance.yahoo.com/news/airlin...131500955.html

 

What a blast from the past. "Takeover"? I don't know how the governance works--Is that the subtext of the legalese in this announcement?

"Airline Industry Veteran Gordon Bethune Leads Stockholder-Nominated Slate for Election to the United Continental Holdings, Inc. Board of Directors

MENLO PARK, Calif. and BOSTON, March 8, 2016 /PRNewswire/ -- Gordon M. Bethune, an airline industry veteran and former Continental Airlines Chief Executive Officer, will lead a stockholder-nominated minority Board slate of six highly qualified director candidates for election to the United Continental Holdings, Inc. (UAL) (United) Board at United's 2016 Annual Meeting."

 

Essentially, yes.

A group of "investors" (cough) have amassed a small percentage of all UAL stock and they are proposing that UAL stockholders vote for their slate of candidates instead of the incumbents at the annual meeting.

We now know why UAL announced some new "independent" directors yesterday.

 

On one hand, I like the public challenge to the miserable status quo of the BOD in a really blunt letter. On the other hand, I noticed the stakeholders were always listed in the same order as "stockholders, customers and employees". Yes, you're a hedge fund and a big holder of UAL shares, but if you want REAL change in your investment, it starts with us minions.

 

All they want is cash.

If they can find a way to get ahold of it without the cooperation of the minions they are OK with that also. UAL will be pumping very positive cash flow for the next few years ---as long as oil does not skyrocket--- and they want their hands on it. Think LUAL post BK and Tilton's "business" plan of "shareholder initiatives" and low spending on employees, aircraft, and facilities.

The seatbelt sign is turned on.

 

Does this shed a different light on other recent activities? Like their unusually aggressive anxiousness to extend our contract. Announce aircraft purchases. Decrease feeder flying.

 

Bethune might need to change his name to Buffoon.

Bethune: I'm helping the interest of the shareholders

 

We have also been informed by two hedge funds, Altimeter Capital and PAR Capital Management, of their intention to nominate six director candidates to United’s board of directors. One of their director nominees is Gordon Bethune, who retired as CEO of Continental Airlines in 2004. As many of you know, Gordon is credited with leading Continental’s turnaround over 20 years ago. And, like Continental in the ‘90s, we are starting to see real improvement in our performance by focusing on our employees, operation and customer experience.

However, PAR and Altimeter aren’t just advocating appointing Gordon to the board. They are nominating six director candidates, which we believe is designed to put their nominees in control of the board and our company's future. This situation shouldn’t change your focus. Nothing changes – so please keep working hard to earn our customers’ trust and taking care of each other. Our focus must remain on running a great airline that all of us are proud to work for and that our customers choose to fly.

-- Oscar Munez

 

Yup.

But, the whole regional feed shrinkage is a different ball of wax due to economics and pilot staffing, IMHO.

 

I'm not sure I disagree about a takeover attempt. May be part of the anti-establishment air in the country, but for sure they left Smisek in place for far too long, by about three years. And even when he left, he wasn't fired with prejudice. He was forced out by someone else. His departure was too little, too late. If this happens they deserve what they get. Their lackadaisical attitude towards his horrible leadership was irresponsible. Oscar's "I'm shocked, SHOCKED" that things were so bad is inexplicably naive for a member of the board--thus a new board may be in order.